Anthony Penree photo

Anthony Penree

Financial Advisor

 

ABC Company

236 Broadway

Menands, NY 12204

 

Phone:  518-870-1081

 

Email: apenree@ltmclientmarketing.com

Website: ltmclientmarketing.com

July/August 2024

Kiddie Tax 2024

Kiddie Tax 2024

If your child has an investment or other unearned income above a certain threshold, that income may be subject to the kiddie tax.


For 2024, the first $1,300 of a child’s unearned income is tax-free. The next $1,300 of unearned income is taxed at your child’s tax rate. Any additional earnings above the $2,600 threshold are taxed at the child’s or parents’ tax rate, whichever is greater.


What Qualifies as Unearned Income?

A child’s unearned income may include:
  • Taxable interest

  • Capital gains

  • Taxable scholarships

  • Income produced by gifts from grandparents or others

  • Income from custodial accounts


Exceptions
The kiddie tax does not apply to children who spend their own earned income for more than half the cost of their support. Children who are married and file a joint return are also not subject to the tax. Your tax professional can provide more information.


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ABC Company and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative. * Securities offered through ABC Company, Member SIPC, 45 Prospect Ave, Albany, NY 12206.

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